Nationalized Spanish Bank Plummets On News Of Bank Run

Tyler Durden's picture

The problem with bank runs is that once they start, they don't stop. And while the world was conveniently distracted by events in Greece, debating whether or not people were withdrawing money in droves (they were), the real bank run happened elsewhere, namely in Spain, where just nationalized bank Bankia moments ago plunged 30% and was halted following an El Mundo report that "customers had withdrawn €1 billion over the past week." In other words -  a bank run (but whatever you do, don't call it that - it's not the politically correct and accepted nomenclature) which has sent shockwaves through Europe, pushed the EURUSD under 1.27, and bond yields in their traditional "Europe is open" direction - wider.

From FT:

Shares in Bankia, the Spanish bank which was part-nationalised last week, plunged by over a quarter on Thursday morning, after a report that customers had withdrawn €1bn from the bank over the past week.


Shares fell 27 per cent to €1.21 after El Mundo, a national Spanish newspaper, reported customers had withdrawn €1bn from the bank over the past week, citing information from a recent board meeting.


The self-styled “the leader of the new banks” was formed from seven cajas last year and has now shed nearly 70 per cent of its market capitalisation since its shares were listed in July of last year.


The fall helped to drive the broader IBEX 35 index down 2 per cent to 6,480.7.

The news has started to spill over to other PIIGS banks, and very soon all Italian banks will resume being suspended limit down on fear that the bank run contagion, pardon, the withdrawal meme (h/t William Banzai), because in this fake, artificially supported world, one is never allowed to call a spade a spade, has commenced.

In th meantime don't panic: after all, just recall the Bank of Spain statement which promised that despite the Bankia nationalization, that "BFA-Bankia is a solvent entity that continues to function quite normally and customers and depositors should have no concern."

Turns out depositors had a few concerns...

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Mae Kadoodie's picture

Typically, i'll use solvent entities to clean Greece stains off my bbq grille.

gatorengineer's picture

Easing-off isnt going to work this time.......

Loukanika the riot dog's picture

Cpl Jones: "Don't panic Captain Mainwaring"
BBC Dad's Army

IMA5U's picture

Run with The Bulls! (sh1t)....


firstdivision's picture

Good to see the markets are going to force Ben's hand back on the keyboard for some Ctl+P action. 

We are approaching "easing" levels on the DXY and WTI.  I'm not going to sit short now, but not long either.  Think I'll wait for gold and silver to pullback a bit more from here then start accumulating.


gatorengineer's picture

Serious question, will we see a US bank run before the election?

tocointhephrase's picture

We can only hope but I doubt it like 99.999% 

moonstears's picture

Next week's lottery numbers Mega Millions please from the guy/gal who can answer that one. THX, in advance.

Poetic injustice's picture

I am sure all will be fine and Spaniards will learn from Greeks to take it in the ass *g*

Have not heard much about demonstrations or anything in Spain, that is big fail.

CryingBear's picture


Al Gorerhythm's picture

Wayne Swan, Australia's treasurer said today that his government has made allowances for anything the world can throw at it because Australia is, well, special. He wants to raise the debt ceiling from $25o billion to $300 Billion, saying that it is necessary so as to make allowances for unforseen circumstances. Here is another expert debt enabler whose job it is to increase the amount of credit in the system and decrys naysayers, labeling them as odd and out of touch and just as loopy as those terrorist tea party members in the US. He claims that he on't have to draw down on that line of credit like they did with the last limit. Sound familiar? Now what could possibly go wrong. It's all working out just dandy for Spain. This Keynesian (dip)shit is world wide.

In other news, Aussies may soon be speaking Mandarin. A prominent Chinese "Defence Strategist" just warned Australia's foreign minister, (unelected) that they have to choose between the US and China as to who they should align themselves with. Australia needed to align themselves with a benevolent "grandfather" protector, in these "interesting" times, warned the Chinese.

The winds of change blows cold in the Pacific. Australia has just opened a new American base in Darwin and the Chinese aren't too happy about it and are making challenging overtures towards the status quo in the region, ie, Australia's and the US's long held friendship treaty has just been questioned with China telling Australia to pick a protector. The Chinese hold the strong hand, what with their reserves and gold holdings. Pick wisely Australia.

GeneMarchbanks's picture

Pertaining to your last point first, 'Australia' has had the issue decided for some time now, in case you don't already get it the Darwin base is part of the USA 'Pivot to the Pacific Century' which should make things a little more clear so far as ability to 'choose'.

As for banks, they're pretty much backed by government so you're 'all in'. The only thing Australia has going for it at this point is that there is room to work with when it comes to interest rates going lower to 'support' the shocks and you have [relatively] low government debt. Still, as a nation private debt is almost comically enormous.

Super Macro's picture

Australians picked Americans because they have similar traits. Smug, fat, lazy, always right, and complete and total triple leveraged banking, property, consumer indebted shi* hole. One question on Australia. How many Greeks live there ? One view of OZ is that its the PIIGS of Asia. AUD will collapse back again to 0.50, property will collapse 50%, and the big banks will implode with only the pension money left to bail them out (but as ALL of it is invested in OZ banks, that nest egg will also be sliced by 50%). OZ should hit China's BID now. If I was Xi or Li I would wait 6-12 months, what a great 2013 trade for the new leadership in Beijing, as its first trade. 

ohhhhhbaaaaahhhhhhhhhmaaaaaahhhhh's picture

Do you think people take cash out to hide it? 

Noh noh noh. 

Dr. Engali's picture

Some people like cash only transactions for gold, silver, and lead.

Bobbyrib's picture

Some do. I wouldn't consider it "hiding" your money, I would consider it taking possession..before you can't.

hedgehog9999's picture

If you all remember, the ONE thing that triggered the Bazooka bailouts in '08 was the bank run on CD's that ocurred one infamous day in September 2008.

You see , banks have Trillions in derivative exposure, probably trillions in bad loans, etc. but that all can be hidden under the rug for years, and continually papered over from time to time by Bernanke and Drahgi.

But, what they can't control is CONFIDENCE, when confidence collapses (which is what's beginning to happen in Greece and now Spain), the Ponzi Fractional banking system collapses, no LTRO or QE can mitigate a massive confidence collapse and therein lies the problem.

As somebody said in this thread , expect a massive worldwide transfusion soon to kick the confidence can a couple off years down......

I sold all my gold PM holdings about 2 months ago. Because of this I am seriously thinking of loading up again starting Today////////////////

Good Luck to all!

JackT's picture one said this shiz was going to overlap. It was suppose to be in proper linear-freaking-order.

Inthemix96's picture

And another thing, have you got to be a complete and utter fucking idiot to get a job working in finance??

My studying in this vital trade has led me to believe that if your not a cunt, bastard or an arsehole you have to be verging on the braindead fucking imbecilic to work for a large bank.

Mind I could be wrong, my studying is work in progress so we will see with the passage of time if my thesis holds water.

Wasted talent eh? The fucking idiots

_underscore's picture

Now don't hold back, ITM - what do you really think of them?

Inthemix96's picture

Haha underscore, monkey see, monkey do eh?


_underscore's picture

Of course I agree & it's always nice to see some proper Anglo-Saxon perjoratives in use. I don't think they are stupid, though - just completely brainwashed, wrt to what they actually do & the mechanisms/mindset employed.

_underscore's picture

To whomever it was who downticked me - it's  what's called, erm, irony?   oh dear...

blunderdog's picture

I'm junking you ironically.

0cz's picture

Look around man...

You have to be a complete fucking idiot ( University of Phoenix Degree still required ) to work anywhere now.  Intelligent people, the few of them left, naturally alienate and make the other slave workers paranoid so they treat you like shit until you leave.  I think it has something to do with a primative defense mechanism that these people are regressing towards. 

The workplace isn't a nice place right now.  Everyone you work with is either; pissed off all the time, too stupid to function as what we once called human beings, or one of those shallow forever pre-addolecent kids who spend 90% of their waking lives texting or doing facebook shit on their cell phones.  I worked at a store for 3 months where every single employee there, including the management, spent 90% of their time at work doing something 'social' on their cell phones.  It is terrifying. 

Hannibal's picture

In context of Govts officialdom:

“I’m not upset that you lied to me, I’m upset that from now on I can’t believe you.”

-Friedrich Nietzsche

tim73's picture

This so funny. "Euro is going down"-talkjobs are actually HELPING Eurozone exporters...especially Germans. Short your heart out the eur-usd! Maybe even 1.15 is possible...that would be too good to be true!

I like these spring/summertime Euro blues! Nice boost to turnover in an otherwise quiet season. 

moonstears's picture

"But, but, just buy some Facebook, and remain calm". A message from your friendly US banking interests. 

Let The Wurlitzer Play's picture

They should try giving toasters to their customers, they might stay.


Hannibal's picture

Load up on physical silver.

timbo_em's picture

Seriously, my ears bleed. Those stupid policymakers don't have the ovaries to call a bank run a bank run or a bad bank a bad bank. How on earth should these clowns be able to manage this astronomical crisis we're in?


LULZBank's picture

You are ofcourse free to express your opinions, but hate speech will not be tolerated.

timbo_em's picture

LULZBank, I'm sorry! It wasn't supposed to be hate speech rather a description of the total ridiculousness going on here on the old continent. Unfortunately, it's no longer possible to edit my comment.

LULZBank's picture

No worries, I'm sorry for forgetting to put my /Sarc on indicator :)

LULZBank's picture

Its like when you catch fish. You lead them all into one direction via various tactics and then ultimately the whole hordes of them to the spot where you have casted your net for the BIG catch. Swiss, US and UK banks?

Monedas's picture

I can call a spayed a spayed....genital mutilation has not delivered on it's promise....castration and spaying should be encouraged !  They cut off a thief's hand....don't they ?       Genital mutilation for first Jon Corzine !   Tongue snipping and tucking for repeat lispers like Barney Frank....designer tongue !  Mugabe merits full castration and glans removal !     Monedas   1929    Comedy Jihad Corrective Plastic Surgery    PS:   Why do they call it a run....if everyone is just standing in line ?  Did you ever notice that Banks don't have back doors ?

sudzee's picture

God has spoken, no bank run right now:


web bot's picture

So now we have 2 canaries in the coal mine:

  1. The results of the upcoming Greek election: if far left/right gain (as opposed to protest vote in last election), this is an ominous for the rest of Europe.
  2. Which country will first see their military take over the seat of government? I kid you not, this is coming to a European country sometime soon.


Vince Clortho's picture

Paging Ben Bernanke for a special press conference.

jamesbbkk's picture

Won't depositors soon run towards nationalized banks?

dbomb12's picture

Soros is licking his chops

Snakeeyes's picture

I posted the Bankia stock chart here. Wow, they is the proverbial Nestea plunge!

Olympia's picture

Loan sharks knew that if they took the dollars printing machines under their control they could suffocate the world ...they could initially suffocate USA and after taking the USA from the Americans, they could move and suffocate the whole world and take the countries from their people.

FED printed cheap money and loansharking multiplied this money in an unnatural way within the American economy boarders and they discarded them abroad so that they did not threaten USA. USA became the first state in the world with artificial “breathing”...

It cannot be possible but just in the USA for only the last year, more than one million houses were seized. It cannot be impossible but the New World has returned to tents and shelters ..has returned to the ages of Columbus. It cannot be possible that we allow to a few loan sharks looting the toils and the assets of people...


Global Debt Crisis


debtor of last resort's picture

Soon we cannot buy phyz anymore i think. Hurry.

Bubbles and Busts's picture

Greece has been experiencing a slow motion bank run for the past couple years, as the above graph shows. Deposits in the country are down more than 30% during that period and updated data for the past few months may show this trend accelerating. The declining level of deposits puts pressure on banks to sell assets and restrict credit, exacerbating deflationary pressures in the economy.

As Dorman points out, recognition that Greece may be covertly pushed off the Euro should/will spark fears amongst depositors within other peripheral countries. The ECB/EU/IMF have been fairly successful, to date, at kicking the can down the road. Sadly this extra time has not been used to enact effective measures for resolving the underlying problems. Further attempts to buy time should be expected, but as these bank runs accelerate it will become increasingly difficult to stem the tide. Nearly 3 years after the first Greek bailout the Eurozone crisis may finally be approaching the endgame. Despite the enormous costs to a disorderly dissolution, I remain unconvinced that politicians will overcome their differences in some type of “grand bargain.”

blunderdog's picture

Makes sense, I don't see why a government has to worry about market cap.

publius999's picture

Not that big a deal (if illegal) to replace that BMW fuel-injection system with a pair of Webers,  or whatever else you can find at the junk yard.    Might have to mess with the jets a bit and fabricate an adaptor,  though bolt-ons are available,  IIRC. 

In the old days,  this was a standard switch for Porsche 914's when the injection system inevitably went south.   Same with replacing the BMW ignition system,  though these are generally pretty reliable.   Any society that cannot provide BMW-replacement parts is probably not much concerned with enforcing  the antipollution laws.